1. CS-413 1 Project Management Context (Part 3) Bilgisayar Mühendisliği Bölümü – Bilkent Üniversitesi – Fall 2009 Dr.Çağatay ÜNDEĞER Instructor Bilkent University, Computer Engineering Middle East Technical University, Game Technologies & General Manager SimBT Inc. e-mail : cagatay@undeger.com

2. CS-413 2 Project Management Context Project Stakeholders –Introduction –Who are stakeholders? Organizational Structures –Introduction –Functional Organization Structure –Projectized Organization Structure –Matrix Organization Structure –Project Management Office (PMO) Standards and Regulations –What is a standard? –What is a regulation? Life Cycle of a Tender –Introduction –From the view point of Employer & Tenderer –Summary

3. CS-413 3 Project Stakeholders A project is started because of having someone interested in –Outcome of a project, Which is required to satisfy their organizational needs. Stakeholders are; –Individuals who cause a project be initiated –Those who are most directly affected by the project’s completion.

4. CS-413 4 Project Stakeholders Actively involved in the project; Have influence over project and its results.

5. CS-413 5 Possible Stakeholders Customers, –Who require outcome of project, Sponsors, –Who support project financially, Project manager, Project team members, Project management office, Other influencers, –Who has influence on project due to their organizational position and power.

6. CS-413 6 Project Management Context Project Stakeholders –Introduction –Who are stakeholders? Organizational Structures –Introduction –Functional Organization Structure –Projectized Organization Structure –Matrix Organization Structure –Project Management Office (PMO) Standards and Regulations –What is a standard? –What is a regulation? Life Cycle of a Tender –Introduction –From the view point of Employer & Tenderer –Summary

7. CS-413 7 Organizational Structures Organizational structures can differ dramatically from one company to another. Organizations may or may not be project based. Those that are not project based; –Usually lack management systems necessary for efficient and effective project management.

8. CS-413 8 Common Organizational Structures Functional Organization Stucture Projectized Organization Stucture Matrix Organization Stucture

9. CS-413 9 Functional Organization Stucture A traditional hierarchical organization (like a pyramid) with; –Top management at the peak, –Direct workers at the bottom, –And middle managers in between. Chief Executive Functional Manager Staff Functional Manager Staff Functional Manager Staff Project coordination

10. CS-413 10 Functional Organization Stucture Each employee has; –One clearly designated supervisor. Employees are grouped by their specialization such as; –Accounting, marketing, information systems, and manufacturing.

11. CS-413 11 Functional Organization Stucture People within different functional areas work separately on different parts of the project. One group takes their part of the project, –Edits it, and Throws it to the next group. In IT projects, because of weak coordination between departments, This structure causes more work for everybody, Results with a product less than what it could be.

12. CS-413 12 Projectized Organization Stucture At the other extreme. A structure where people from different functional backgrounds work together through life time of a project. Chief Executive Project Manager Staff Project Manager Staff Project Manager Staff Project coordination

13. CS-413 13 Projectized Organization Stucture Designed specifically to provide necessary resources for the project work. In IT projects, –Because of weak coordination in project groups, Experienced personnel, possibly required for multiple projects, are not effectively used among projects.

14. CS-413 14 Matrix Organization Stucture In the middle spectrum. A structure that typically crosses; –Functional design on one axis and –Some other design characteristic (e.g. project managers) on the other axis. Chief Executive Functional Manager Staff Functional Manager Staff Functional Manager Staff Project coordination Manager of Project Managers Project Manager %%

15. CS-413 15 Matrix Organization Stucture Project staffs are designated to more than one supervisor; –Report to both; Project managers and Head of their functional areas.

16. CS-413 16 Types of Matrix Stuctures Weak matrix structures Strong matrix structures

17. CS-413 17 Weak matrix structures More near to functional organizations. Project managers; –Have less authority on projects, –Act like as coordinators than as independent managers.

18. CS-413 18 Strong matrix structures More near to Projectized organizations. Project managers are dedicated to projects with full authority.

19. CS-413 19 Strong matrix structures More difficult to manage a matrix organization.

20. CS-413 20 Project Management Office (PMO) An organizational unit created; –To centralize and coordinate the projects within an organization. Matrix structures often have a PMO. Projectized structures almost always have a PMO.

21. CS-413 21 Project Management Context Project Stakeholders –Introduction –Who are stakeholders? Organizational Structures –Introduction –Functional Organization Structure –Projectized Organization Structure –Matrix Organization Structure –Project Management Office (PMO) Standards and Regulations –What is a standard? –What is a regulation? Life Cycle of a Tender –Introduction –From the view point of Employer & Tenderer –Summary

22. CS-413 22 Standard A document approved by a recognized body; –Provides, for common and repeated use, rules, guidelines, or characteristics For products, processes or services, With which compliance is not mandatory. e.g. some software development standards such as; –IEEE Software development stds. –High Level Architecture (HLA) M&S std.

23. CS-413 23 Regulation A document that; –Specifies product, process or service characteristics, including applicable administrative provisions, –With which compliance is mandatory. e.g. some safety regulations for production of public goods.

24. CS-413 24 Project Management Context Project Stakeholders –Introduction –Who are stakeholders? Organizational Structures –Introduction –Functional Organization Structure –Projectized Organization Structure –Matrix Organization Structure –Project Management Office (PMO) Standards and Regulations –What is a standard? –What is a regulation? Life Cycle of a Tender –Introduction –From the view point of Employer & Tenderer –Summary

25. CS-413 25 Life Cycle of A Tender (Definitions) Tender/Awarding : –A process for purchasing a service or material Employer/Administration/Client : –Organization or person that requests to purcase a service or material Tender Document : –A set of documents prepared and issued by the Employer for Tender purpose.

26. CS-413 26 Life Cycle of A Tender (Definitions) Tenderer : –Company submitting a proposal to the Tender Tender Proposal : –The proposal of the Tenderer to meet the required service or material of the Employer

27. CS-413 27 Life Cycle of A Tender (Definitions) Tender Board/Commitee : –A group of people authorized by Employer To select the best tender proposal among the submitting ones –According to Employer policies. Contractor : –Company elected for providing the service and materials specified in the Tender document.

28. CS-413 28 Life Cycle of A Tender (Definitions) Contract : –Written agreement between Employer and Contractor Setting forth the obligations of the parties thereunder, –Including, but not limited to; »The performance of the work, »The furnishing of labor & materials and the basis of payment.

29. CS-413 29 Employer (Stage 1) The Employer determines his needs. Prepares a written document for his needs –(Project Definition Document). Prepares a document for tendering process, –Including conditions and formalities of purchasing –(Conditions of Contract, and Accompanying Documents). Determines tender closing date. Prepares a guideline for the Tenderers –(Instructions to Tenderers). Issues the Tender.

30. CS-413 30 Employer (Stage 2) Employer issues the tender by –Publishing it in the official gazette, and/or –Sending invitation letters: To eligible companies or If it is a confidential project, –To eligible companies having some; »Quality Levels (e.g. ISO, CMMI) »Security certificates (e.g. National, NATO).

31. CS-413 31 Employer (Stage 3) Until the tender closing date, the Employer : –May revise tender documents, –May postpone tender closing date, –May answers questions of Tenderers. Collects proposals until tender closing date and –Pricing envelopes are only opened after this date. Examines proposals for procedural convenience, and –May request Tenderer for correction of inconvenience. Tenderers whose proposals do not satisfy procedural requirements are eliminated from the tender.

32. CS-413 32 Employer (Stage 4) Employer starts evaluating valid proposals and assigning points to them: –Technical Evaluation, –Company Qualification, –Administrative Evaluation, –Price Evaluation. Employer orders companies with respect to their points. Employer selects: –Either a winner company or –A few winner companies (short list)

33. CS-413 33 Employer (Stage 5) CASE 1 : A Winner Company In Case of a single winner company: –Winner company is announced –Employer; May bargain price, May request Best and Final Offer (BAFO), and Discuss administrative and technical conditions and specifications with the winner. –An agreement is made. –A contract is signed by both parties. –Project is initiated. In case of disagreement, –Employer may call second eligible company for contracting.

34. CS-413 34 Employer (Stage 5) CASE 2 : A Short List In Case of multiple winner companies: –Employer; May bargain prices, May request BAFO, and Discuss administrative and technical conditions and specifications with each winner –(This could be done in a meeting open to all winners or in seperate meetings with individual winners). –Employer aim at obtaining best with lowest price. –Employer selects the most beneficial winner. –An agreement is made. –A contract is signed by both parties. –Project is initiated.

35. CS-413 35 Tenderer (Stage 1) Obtains Tender documents; –If Emloyer requests a price for applying, pays it. Starts preparing a proposal: –Examines project requirements and risks; –Prapares a coarse project management plan; Decides on the architecture (or alternatives); Builds a work breakdown structure; Estimates resources (e.g. time, cost) required; Prepares a schedule if not given by the employer Prepares a price breakdown structure; Answers technical matters; Answers administrative matters; –Prepares; Official letters, Tender forms, Guatantee letters.

36. CS-413 36 Tenderer (Stage 2) Asks Employer for clarifications of unclear issues. Revises his proposal. Attaches; –Hardware and software specification documents, –Company qualification documents: References, Certifications (e.g. ISO, CMMI), Any other related document. Finalize Tender proposal.

37. CS-413 37 Tenderer (Stage 3) Submits Tender proposal, –Before Tender Closing Date; –Tries to submit it as late as possible; –Gets a verification document from Employer for his submission. Waits for requests and decisions of Employer. In case called by Employer, –Holds several meetings for agreement, –May reduce the price, or –Increase/decsrease specifications. –Upon agreement, Signs a contract with the Employer, and Project is initiated.

38. CS-413 38 Summary EMPLOYER prepares tender documents EMPLOYER publishes tender documents TENDERER gets tender documents TENDERER prepares tender proposal TENDERER submits tender proposal Tender closing date (deadline for proposals) EMPLOYER collects and evaluates proposals EMPLOYER may request correction of inconveniences from TENDERERS EMPLOYER orders the proposals EMPLOYER calls a winner for bargain EMPLOYER calls elected winners for bargain EMPLOYER annonces winner EMPLOYER & TENDERER prepare contract EMPLOYER & TENDERER signs the contract EMPLOYER makes a decision (continue or cancel) EMPLOYER selects the most benefical proposal EMPLOYER may call the second winner Project is initiated EMPLOYER answers questions EMPLOYER gets support of a consultant EMPLOYER gets support of a consultant